Governmental entities and private owners are becoming increasingly confronted with dilemmas posed by professional sports teams. In particular, many governmental and business entities are currently involved in prolonged discussion and debate over the operation or construction of new stadiums, as well as the relocation and/or purchase of the teams themselves.
The Minnesota Twins, for instance, have recently announced the signing of an agreement to sell the team to an out-of-state owner, unless the Minnesota legislature or some private entity either approves or funds the construction of a new stadium. Clearly a decision on the part of the legislature will depend heavily on the state's ability to establish and agree upon an appropriate financing mechanism. Options that have been discussed include gambling, cigarette taxes, etc. Each of these options, however, carries considerable public disfavor and political risk. On the part of a private entity, the funding decision involves finding an effective low cost financing mechanism to fund such a large facility.
What is clearly needed are creative methods for financing such projects in a manner that is palatable to the public or the team's owners or buyers, acceptable to investors, and above all, effective at raising the necessary level of funding in a politically acceptable manner.